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#HR Word : #Delayering

27 Jan

Delayering is removal of some of the intermediate layers between the top management & lower layers to focus on operational efficiency, reduce compensation costs, & better implementation of the ideals


Delayering helps in creating a more compact organization and makes the company more transparent with less hierarchy.

In any organization the functional role is divided into layers of management. The levels create the hierarchy upon which the organization is based. Often too many levels lead to confusion among the employees & the implied task gets either hampered or slowed.

Advantages

1. Increased decision making ability for the lower levels, as they are closer to the higher levels

2. Better communication among the employees, as chances of “Lost in translation” is lost

3. Doing away with redundant or not much value adding positions & putting those employees in meatier roles makes more sense.

Disadvantages

1. Top management may start gaining more power in decision making without ground realities.

2. Delayering may not be suitable for all organizations, like government organizations, where decision making is dependent on several authorities.

3. To implement delayering it takes time & need to make people aware of the benefits.

Along with delayering we need other initiatives to improve upon the organizational aspects like job rotation among verticals, employee engagement, etc. in order to motivate employees & keep organizational efficiency high.

 
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Posted by on January 27, 2017 in HR Word of The Day

 

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